(Bloomberg) -- Shenzhen-listed Jinke Properties Group Co. has picked banks for the Hong Kong initial public offering of its property management unit, which could raise at least $500 million, according to people familiar with the matter.
The developer has selected CLSA Ltd. and Huatai International Financial Holdings Ltd. to work on the unit's listing plans, said the people, who asked not to be identified as the discussions are private. In April, Jinke said it's seeking a Hong Kong listing for its property management arm but didn't provide further details.
Deliberations are ongoing and details of the offering including size could still change, the people said. A representative for CLSA declined to comment, while representatives for Huatai International and Jinke didn't immediately respond to requests for comment.
Jinke is joining a slew of Chinese developers in spinning off its property management arm this year, including Hong Kong-listed KWG Group Holdings Ltd. and Shenzhen-based Excellence Group, Bloomberg News reported previously. A listing could also come as the Hong Kong market is getting a boost from huge share sales by Chinese online retailer JD.com Inc. and gaming firm NetEase Inc.
Read more: Hong Kong Share Sale Bonanza on Track as JD Is Oversubscribed
Jinke's property management unit manages nearly 800 projects in more than 20 provinces in China, the developer said in its 2019 annual report. The business was ranked among the nation's top 10 property management firms last year by real estate consulting firm China Index Academy. The unit posted revenue of about 2.8 billion yuan ($396 million) and net income of 406 million yuan, according to a separate statement by Jinke.
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With assistance from Bloomberg
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